UK Companies Plan 3% Salary Increase, But AI May Reduce Jobs

Post by : Sameer Saifi

A new survey in the United Kingdom shows that many companies are planning to increase employee salaries by about 3% in the next 12 months. However, the same survey also shows that some employers believe artificial intelligence may lead to a reduction in jobs.

The survey was done by the Chartered Institute of Personnel and Development, which works with human resource professionals. It found that hiring plans in many companies are weaker than they have been since the COVID-19 pandemic. This slowdown is more noticeable in government and public services.

According to the data, one out of every six employers expects that using AI tools will allow them to reduce the number of workers. Some companies think the reduction could be more than 10%. Jobs that may be most affected include junior managers, office clerks, administrative workers, and some skilled professional roles.

Experts say the government should avoid new policies that make hiring more expensive for companies. They also suggest that businesses should invest in skill training. This will help workers learn how to use AI tools or move to new kinds of jobs as technology keeps growing.

Overall, more than 2,000 businesses took part in the survey. The average planned pay raise has stayed around 3% for over a year. Meanwhile, other reports show that wage growth in the UK is being closely watched, because it can affect inflation and future interest rate decisions.

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